District OKs budget, eyes furloughs for next year; failure of state tax measures could mean $3M loss

SANTA CRUZ - Trustees for Santa Cruz City Schools unanimously approved a $57.5 million budget Wednesday, a plan that already reflects $2 million in cuts even as the district braces for nearly $3 million more in losses.

The 7,000-student district swept money for maintenance and found other one-time savings that will largely keep cuts away from the classroom. But as the state looks to close a $16 billion deficit, the district stands to lose $2.9 million in January if voters turn down tax measures in November.

Teachers have agreed to a five-day furlough next spring if the measures fail, and the district could erase the rest of the red ink by drawing down reserves to the 3 percent level required by the state. But the district, which has seen its revenue drop by $10 million in five years, would still face future cuts.

"We still have quite a lot of work to do for 2013-2014," said Alvaro Meza, assistant superintendent for business services.

The district would have faced $2 million in additional cuts in 2013-2014 had voters not approved Measures I and J on the June 5 ballot, which renewed and increased parcel taxes to support library, arts, counseling and music programs. The funding was guaranteed for next year, but set to expire in 2013.

What isn't factored into the budget are funds that once belonged to the Santa Cruz Redevelopment Agency. The legislature did away with the state's 400-plus redevelopment agencies partly to secure more funding for schools, but there is uncertainty over how the money will be redistributed.

The board also OK'd a request to continue studying revisions to graduation requirements, which preliminarily includes recommendations to increase math and fine arts requirements and incorporate health education into other topics.

But after teachers and parents complained a district committee didn't seek enough input before making the initial recommendations, the board insisted staff widen community consultation.

"If we're going to make this effective, you need buy-in," said Heather Murphy, a Harbor High biology teacher.

Superintendent Gary Bloom said his staff was only asking to continue a study started last year.

"This was an inclusive process, a yearlong process, and there was a lot of communication that may not have reached everybody," Bloom said. "There is no action tonight to make requirements hard and fast."

Also, Wednesday's meeting was the last for Trustee Rachel Dewey-Thorsett, an eight-year member who is moving to Oregon, where her husband, Stephen Thorsett, a former science dean at UC Santa Cruz, took a job as Willamette University's president.